Apple iPhone assembler eyes major production shift out of China to India

In a major production shift out of China as part of global business’ efforts to diversify supply chains following the COVID-19 debacle, a contract manufacturer for Apple is shifting six production lines capable of exporting some $5 billion worth of iPhones from India above and beyond those catering to the domestic Indian market.

The Times of India:

The establishment of the facility is expected to generate employment for around 55,000 Indian workers over a year or so, sources familiar with the exercise told TOI. The vendors may expand the operations beyond phones to include tablets and even computers and laptops in the coming years.

China has come under increased scrutiny after the COVID-19 global health crisis as it tried to suppress the outbreak in Wuhan. With trade tension already mounting and Beijing’s role under the lens, several global giants are looking to diversify their production bases across the world. India has aggressively moved in seeking to be part of the new production supply chain.

Container loads of goods from Apple’s key contract manufacturer have already reached India in the wake of the pandemic and China’s initial attempt to smother information about its outbreak…

Apple’s contract manufacturers, Wistron, Pegatron and Foxconn, Korean giant Samsung along with Indian players such as Dixon Lava and Micromax will manufacture mobile phones under the government’s production-linked incentive scheme. Foxconn already has a plant, while Wistron and Pegatron are likely to follow suit.

MacDailyNews Take: BLTN. What did we write long before COVID-19? Oh, right:

It’s smart for both Apple and Foxconn to diversify assembly outside of China. There’s no sense having all of your eggs in one basket. — MacDailyNews, April 2, 2019